# EUR-Lex - 52013DC0940 - EN

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# 52013DC0940

**COMMUNICATION FROM THE COMMISSION Building the Transport Core Network: Core Network Corridors and Connecting Europe Facility /* COM/2013/0940 final */**

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COMMUNICATION FROM THE COMMISSION

Building the Transport Core Network: Core
Network Corridors and Connecting Europe Facility

1.           Introduction

With the revision of the TEN-T guidelines[1], the EU has for the first time defined a Core Network of transport
infrastructure which comprises all transport modes and which has been
identified through an objective methodology[2].
The new guidelines also set the deadline of 2030 for the delivery of this Core
Network. This process has also given the input to
establish the investment priorities and the potential projects to be financed.

An ambitious TEN-T policy needs an ambitious budget to accelerate
its implementation. The negotiations on the MFF 2014 – 2020 have yielded a
budget for the TEN-T in the Connecting Europe Facility[3] (CEF) of EUR 26.250
billion, including EUR 11.305 billion ring-fenced for the Member States
eligible to the Cohesion Fund ("the cohesion envelope")[4]– a threefold increase
compared to 2007 -2013.

In parallel with the delegated act on the
CEF transport priorities[5],
this Communication aims at:

–
providing information on the potential budget
and instruments available under the future framework;

–
guiding potential applicants with regard to direct
management of funds and providing information on the expectations of the Commission's
from potential beneficiaries;

–
explaining how the Commission intends to support
the creation and the functioning of the Core Network Corridors.

The adoption of the delegated act is a
necessary step before the beginning of the implementation of the programme and
to make funds available to the projects.

2.           Implementing the Core
Network Corridors

Experience has shown that the most
difficult issues for the creation of a trans-European network are (1) the cross
border infrastructures, (2) the technical interoperability and (3) the
integration of different transport modes. The new guidelines therefore
introduce the "Core Network Corridors" as an implementation
instrument designed to support the efficient creation of the Core Network by 2030.
Core Network Corridors will bring together the main stakeholders, public and
private, along the most important transport routes in order to plan and develop
the infrastructure in function of the needs and the available resources.

2.1.        What are Core Network Corridors?

The concept of the Core Network Corridors
is defined in Chapter IV of the new TEN-T Regulation (EU)
No 1315/2013. The CEF defines the geographical
alignment of the nine Core Network Corridors. Figure 1 shows a schematic
indicative map of the Core Network Corridors as required by Article 44(2) of
the TEN-T Regulation.

Figure 1: Schematic
indicative map of the Core Network Corridors as required by Article 44(2) of
the TEN-T Regulation

Each Core Network Corridor will embrace all
the transport modes (road, rail, inland waterways, maritime and air transport),
and in particular the connection platforms between the different transport
modes (seaports, inland ports, airports, rail-road terminals), thus facilitating deployment of efficient and sustainable freight
transport services. The Corridors will focus on modal
integration, interoperability and on the coordinated development of
infrastructure, in particular in cross border sections, across transport modes
and for bottlenecks. The Corridors will further develop traffic management
systems and promote the uptake of sustainable freight services and of innovation
and new technologies, for instance in terms of provision of the infrastructure
for alternative fuels. Wherever appropriate, the Corridors will use Motorways
of the Sea as the maritime dimension of the Core Network Corridors and the Rail
Freight Corridors as the rail freight dimension of the Core Network Corridor.

2.2.        The functioning of the Core
Network Corridors

2.2.1.     European Coordinators

Following the positive experience with the
European Coordinators for priority projects in the current TEN-T policy[6], the work of the Core Network Corridors will be driven forward by
the European Coordinators. The TEN-T Regulation sets out the requirements,
tasks and designation procedure for the European Coordinators.[7] For each Corridor, there will be one European Coordinator.
Additional Coordinators for Motorways of the Sea and ERTMS will be nominated
(see below). The European Coordinators act on behalf of the Commission. The
European Coordinators will chair the Corridors' Forum, with the assistance of the
Commission.

2.2.2.     Corridor Forum and Working
Groups

The European Coordinator, in close
cooperation with the Member States concerned, will set up a Corridor Forum for
the respective Core Network Corridor. The Corridor Forum will be a consultative
body, chaired by the European Coordinator, involving Member States and – upon
agreement of the Member States concerned – selected other members representing
for example regions, infrastructure managers, representatives of Rail Freight Corridors,
River Commissions (where relevant), ports, airports, rail-road terminals,
operators, users and other stakeholders.

The Corridor Fora are at the heart of the Core
Network Corridors. Their aim is to serve as a common, high level structure for
a given Corridor. They will play a central role in discussing the general
objectives of the Core Network Corridor, in preparing and in following up the
implementation of the measures laid down in the work plan.

The Corridor Forum will meet more regularly
in the first year to prepare the work plan, and thereafter at a reduced yearly
rhythm in line with the identified needs. The meetings of the Corridor Forum
could be hosted by one of the Member States concerned with a rotation among
these Member States.

The Coordinator, together with the Member
States concerned, can decide to establish working groups in order to carry out
the technical work as regards certain cross-border projects, interoperability
issues and better modal integration.

2.2.3.     The work plan

The TEN-T Regulation foresees that for each
Corridor a work plan has to be developed within one year of its entry into
force.

The work plan
will analyse the current situation of the Corridor, identifying in particular
the relevant parts of the Corridor, its bottlenecks and interoperability
problems. This will be mainly based on existing studies and materials and the
joint analysis thereof. It will then identify the actions to be taken, their
timing and the required and available financial resources. Actions will include
planned infrastructure investments as well as other measures to remove
physical, technical, operational and administrative barriers between and within
transport modes and for the enhancement of efficient, innovative and
sustainable multimodal transport and services. In that context the work plan
could also identify possible actions to enhance the role of the core sea and
inland ports as enablers of inter-modality.

A close cooperation
between the different governance bodies on the European transport Corridors
(i.e. Core Network Corridors, Rail Freight Corridors, where relevant River
Commissions) is needed to ensure consistency, in order to benefit from
synergies and avoid duplication of work.

The work plan
has to be approved by the Member States concerned, following consultation of
the Corridor Forum. The Commission may then transform the work plan into an
implementing Decision, thereby giving a clear legal framework for the
development of the Core Network Corridor. The work plan will be revised
alongside the 2017 mid-term review for the CEF in order to take stock, deepen
and update where necessary the work plan.

2.2.4.     Timing

In order to establish the work plan within
the timeline provided for in the TEN-T Regulation, the Commission envisages an
indicative timetable for the Core Network Corridors as follows:

First quarter 2014 || Nomination of the European Coordinators

April, June, October, November 2014 || Meetings of the Corridor Forum to elaborate on the work plan

As of April 2014 || Creation and meetings of working groups

December 2014 || Approval of the work plan by Member States

January 2015 || Possible implementing act by the Commission

As of 2015 || Regular meetings of the Corridor Forum and working groups

2.2.5.     Horizontal Coordinators

The TEN-T Regulation provides for two
European Coordinators in addition to the European Coordinators for the Core
Network Corridors. These Coordinators will work on the coordinated
implementation of Motorways of the Sea and ERTMS, as these issues will concern the
entire Core Network and will benefit from a horizontal approach. The Regulation
does not foresee the establishment of a Forum and a work plan for these
Coordinators.

However, the Coordinator
for Motorways of the Sea will present two years after being designated a
detailed implementation plan for the Motorways of the Sea.[8]

The Coordinator for ERTMS will work on the
basis of the European Deployment Plan for ERTMS[9],
expanding towards a full deployment of ERTMS on the Core Network Corridors and
the entire Core Network.

2.3.        Cooperation of Core
Network Corridors with other initiatives

In the course of the legislative procedure
for the adoption of the TEN-T Regulation and the CEF, great effort has been
deployed to ensure maximum consistency and synergies between the Core Network Corridors
and the Rail Freight Corridors established under Regulation (EC) No
913/2010[10]. Their functioning and structures as foreseen will not be altered
through the TEN-T Regulation and their geographical scope corresponds to the
Core Network Corridors, allowing both groups to use the same studies, to have
the same interlocutors and to ensure eligibility for EU financial support. Representatives
of Rail Freight Corridors should
participate in the Corridor Forum.

The
establishment of the Core Network Corridors and the work plan will also endeavour
to allow for indicators measuring the sustainability of transport, such as those
developed by studies on "Green Corridors"[11]
to be put into practice and will contribute to the Commission initiative on
ports[12]. The latter, seeking to better use
existing port capacities, attract port investments and develop the necessary
connections to the hinterland will give a proactive role to port stakeholders in
the Corridor Fora of Corridors.

The NAIADES
II[13] will build upon the Core Network Corridor
implementation for delivering quality inland waterways with good navigation
status across the Core Network. The relevant NAIADES II actions such as the
further development of River Information Services and measures to enhance the
sustainable character of the sector should where relevant be integrated into
the Corridor Fora meetings and work plans, which will require active engagement
of inland waterways stakeholders.

The Marco
Polo Initiative will be continued as integral part of the CEF in line with
the definition of the Sustainable Freight Transport Services in Article 32 of
the TEN-T Regulation.

3.           Implementing the TEN-T
with the CEF

3.1.        The CEF funding priorities
for the work programmes

The CEF budget is insufficient in
comparison to the investment needs identified on the Core Network, amounting to
around EUR 250 billion. Therefore the Commission must do its utmost to use the
funds efficiently and optimise the focus of the EU funds in line with the EU Transport
Policy defined in the White Paper and prioritised in line with the CEF
Regulation. In particular, Part IV of Annex I[14]
to the CEF Regulation which establishes that 80% of the funds are to be spent
on removing bottlenecks, enhancing rail interoperability, bridging missing
links, and in particular improving cross-border sections.

The proposed delegated act supplements the
Regulation in order to list the funding priorities to be reflected in the annual
and multiannual work programmes. However, in order to give long-term visibility
to the European Parliament, Member States and stakeholders, the Commission has
decided to clarify the allocation of CEF funds for each of the priorities for
the 2014-2020 period. The funding allocated to each of the priorities takes
into account the conditions established in the CEF Regulation, including the
different caps and targets. In line with the CEF Regulation, the Commission
will give priority to projects of high EU added value. This means in particular
projects building or upgrading cross-border sections, removing bottlenecks on
the main European traffic routes, and prioritising the realisation of links
currently missing in the network.

Taking the above elements into account, the
Commission considers that it is in a position to set ranges for each of the
given priorities, while allowing for flexibility in the management of the
funds.

3.1.1.     Cross-border, bottlenecks and
multimodal projects on the Core Network Corridors

Under this priority, the Commission intends
to focus available financing on the projects that have the highest EU added
value: projects on major missing cross-border projects, major bottlenecks and
other cross-border sections to be improved. The CEF gives priority to the
development of infrastructure for the greener modes of transport, such as
railways and inland waterways, while giving an exemption for Member States
without such networks.

(a)
Major missing cross-border projects include Evora – Merida (PT/ES), Seine – Escaut (FR/BE/NL), major
projects on the Scandinavian – Mediterranean Corridor of which the Fehmarn Belt
(DK/DE) and the Brenner Base Tunnel (IT/AT), major projects on the
Mediterranean Corridor including Lyon – Torino (FR/IT), as well as the Rail
Baltic[15]
(FI/EE/LV/LT/PL). The Commission estimates that the first five projects
mentioned could absorb altogether up to €5bn between 2014 and 2020, whereas the
cost of the Rail Baltic project has been estimated at €3.6bn by the recent
study[16].

(b)
Further to the major missing links,
trans-European traffic flows are hindered by the existence of major
bottlenecks between major economic centres, ports or urban areas. Amongst
the major bottlenecks for example the Stuttgart – Ulm railway connection in
Germany on the Rhine Danube Corridor, the Danube locks in the Iron Gates at the
border between Romania and Serbia, the Halle/Leipzig – Nurnberg high speed
railway connection, the bridges over the Albert Kanaal or the Perpignan –
Montpellier high speed rail line connecting the high speed networks of the
Iberian Peninsula and France.

(c)
There are also a number of cross-border
sections to be improved to facilitate the cross-border traffic flows
throughout Europe. For instance, projects such as the upgrading of the common
section between Bulgaria and Romania of the Danube and of the railway connections
Katowice (PL) – Zilina (SK), Munich (DE) – Salzburg (AT) or between Arad (RO) –
Sofia (BG) – Thessaloniki (EL) need major works.

(d)
The Core Ports are
the entry points to the Core Network and also here the bottlenecks have to be
removed, for instance by improving the hinterland connections.

(e)
This priority also covers projects ensuring multimodal
integration or promoting rail interoperability, for instance,
projects improving the multimodal capacities of sea and inland ports, projects adapting
the gauge to the European nominal gauge, and projects paying attention to the
improvement of accessibility. It will also cover projects in urban nodes.

The Commission estimates that the projects
included under the categories b) to e) could absorb from the CEF altogether
between EUR 3.5 and 4.5bn.

In addition, most of the EUR 11.3bn of the
cohesion envelope will be used for the cross-border or bottlenecks projects on
the Core Network Corridors.

3.1.2.     Other priorities

The following table gives an indicative
overview of the other priorities and an estimate by the Commission in terms of possible
financial support. Those amounts are not prejudging the decisions to be taken
by the Commission in the context of the work programmes or when adopting the
financing decisions for projects.

Funding priorities || Indicative amounts (in EUR) || Explanations

SESAR || 2.3-3bn || The deployment of the SESAR system requires Union budgetary resources of about €3bn. SESAR is a horizontal priority in the CEF Regulation.

ERTMS || 800-1100m || ERTMS is a horizontal priority in the CEF Regulation.

Motorways of the Sea || 500-900m || Motorways of the Sea, as defined in Article 21 of the TEN-T Regulation, is a horizontal priority in the CEF Regulation.

Projects of the comprehensive network || 600-1000m || These projects are subject to a cap at 5% of the CEF transport envelope. The EUR 11.305bn transferred from the Cohesion Fund are only for the Core Network. Financial instruments can be used in addition to the 5% cap.

New technologies and innovation for all modes || 250-400m || New technologies and innovation are defined by Article 33 of the TEN-T Regulation.

Other Telematic Application Systems (RIS, ITS, VTMIS, e-Maritime) || 250-400m || The on-board components are capped at 5%, including on-board components of SESAR.

For actions to reduce freight noise || 200-260m || These projects are capped at 1% of the CEF transport envelope.

For freight transport services || 150-200m || Sustainable Freight Transport Services are defined by Article 32 of the TEN-T Regulation.

Priority || Amounts (in EUR) || Explanations

Projects to connect the trans-European transport network with infrastructure networks of neighbouring countries || 50-100m || Eligible projects under the CEF are listed in Article 8(1), points (a) to (e) of the TEN-T Regulation.

Financial instruments || 1.3-2.4bn || The estimated market take-up for transport is at EUR 2bn. For the overall CEF budget covering transport, energy and telecommunications, a cap of 10%, with possible increase up to 20% of the CEF envelope, is set in the legal base.

Programme support actions (PSA) || 260m || PSA consist of technical and administrative assistance expenses incurred by the Commission for the management of the CEF and TEN-T implementation. They are capped at 1% of the CEF transport envelope and will be principally used to meet the cost of the Executive Agency. There will be specific PSA for Cohesion Member States.

3.2.        Main principles of the direct
management of grants and major expectations

The CEF will be managed directly by the Commission,
assisted by an Executive Agency. The annual and
multiannual work programmes which define for calls for
proposals the indicative budget, the timetable, the objectives and the foreseen
results, the priorities, the maximum possible rate of co-financing as well as the
eligibility, the selection and award criteria, will be
adopted by the Commission after the approval of the CEF
Committee under the examination procedure).

The Commission, assisted by an Executive
Agency, will be responsible for the evaluation and selection of projects, as well
as managing the technical and financial implementation of the programme: dialogue
with beneficiaries, technical and administrative advice, reporting guidance, follow-up
of project performance.

As regards the evaluation, the Commission
intends to use the 2-step approach of the 2007-2013 TEN-T Programme, with first,
an external evaluation organised by the Executive Agency with independent EU experts
followed by an internal evaluation at the level of the Commission. The reasoned
advice given by the external evaluators is of advisory nature to the Commission
and the Commission, while duly justifying its decisions, may deviate from the
advice given by the external evaluators.

The Commission will retain the prerogative
to fund a project partially and to reduce the scope of the project proposal if
it contains elements not compliant with the funding priorities established by
the CEF Regulation.

With the aim of ensuring best use of EU funds,
the Commission will apply Article 12(2) which foresees the reallocation of
resources after reduction or termination of the
financial assistance to the action in case the projects
do not perform according to the financing decisions, following an evaluation of
the progress of the project, in particular in the event of major delays in the
implementation of the action. Therefore the Commission calls the beneficiaries
to propose realistic milestones for project implementation with adequate
contingencies.

According to Article 10(6) of the CEF
Regulation and Article 7(2c) of the TEN-T Regulation the amount of financial
assistance granted to a project shall be modulated based on a cost-benefit
analysis of each project, the availability of Union budget resources, and the
need to maximise the leverage of Union funding. Consequently, all the project
proposals for 'works'[17]
must be accompanied by a cost-benefit analysis proposing the co-funding rate requested
for the project, while taking into account the maximum funding rates stipulated
in the CEF Regulation. Member States shall be asked to use a recognised
methodology and in particular the Cohesion Policy methodology[18] as far as the projects
funded from the Cohesion envelope of the CEF are concerned. The relevant project proposals may also be assessed in light of the work
plans of the core network Corridors, which will provide a further element for
the prioritisation of projects under the CEF. The project proposals for works
must also demonstrate the action being compliant with the relevant EU environmental
legislation.

The Commission intends to ensure the
coordination of the CEF with other EU funding programmes with the aim of
ensuring complementarity. This is relevant inter alia for the resources
available under European Structural and Investment Funds, the Neighbourhood
Investment Facility (NIF) or the Instrument for Pre-Accession Assistance (IPA).

However, the direct management procedure
does not mean that the Commission would interfere in the implementation of the
projects by the Member States: procurement procedures, project implementation
on the ground and environmental impact assessment procedures, in particular
those required by EIA, Habitats and Water Framework Directives will be still under
the responsibility of the beneficiaries and national authorities.

3.3.        Specificities of the multiannual
and annual calls for the cohesion envelope

As a general rule, the rules and funding
priorities for the Cohesion envelope will be the same as for the EUR 14.9bn
component of the CEF, with a focus on cross-border and bottleneck projects on
the Core Network Corridors. The Commission intends to cover the two components
of the CEF under the same work programmes. However, higher co-funding rates
will be made available (i.e. similar to the Cohesion Fund) and rules on VAT and
land-purchase will echo the rules of Cohesion Policy. As a general rule, for
the EUR11.3bn transferred from the Cohesion Fund the rules of centralised
management as indicated above will apply.

It must be noted that the Commission
considers that the possibility to receive high co-funding rates from the CEF
budget requires a rigourous evaluation of the project and its benefits, due to
the limited contribution of the project by its promoters. The latter would in
particular mean the thorough analysis of the scope of the project proposals with
the aim of ensuring efficient use of the EU funding.

During the first 3 years of the
implementation of the CEF, the selection of projects eligible for financing in
the cohesion envelope will respect the national allocations under the Cohesion
Fund, as set out in Article 11(2) of the CEF. It means that during the first 3
years, no eligible Member State can be allocated a volume of co-funding for
projects from the €11.3bn part
of the budget transferred from the Cohesion Fund that is higher than its corresponding national allocation. In order
to give maximum possibility to all eligible Member States to prepare mature
projects of high quality and EU added value, the Commission intends to launch
calls in springs of 2014, 2015 and 2016.

However, if funds from the Cohesion
envelope are not committed after the last call in 2016, additional calls will
be organised in spring 2017 onwards to absorb the remainder, without applying
the principle of national allocations. From 1 January 2017, calls may also
allocate funds recovered from projects that do not perform according to the
financing decisions in force, in line with Article 12 of the CEF regarding the
possibility to cancel, reduce, suspend and terminate grants. These calls will
continue to be reserved for projects in the Member States eligible to the
Cohesion Fund, applying the specific rules listed in
the first paragraph above.

As set out in Article 11 of the CEF,
particular attention will be given to programme support actions aimed at
strengthening administrative capacity for Member States eligible to the
Cohesion Fund in order to develop an adequate project pipeline. These actions may take several forms: grants for preparatory studies
for projects; Member States could also decide to use the help of the Joint Assistance
to Support Projects in European Regions (JASPERS); finally, targeted technical
assistance can be provided to potential beneficiaries, such as railway
infrastructure managers, to help those organisations with the preparation of
the project proposals.

3.4.        Financial instruments

One of the key elements of the CEF is the objective
to increase the use of innovative financial instruments (amongst which Project
Bonds), in order to build an environment conducive to private investment in
infrastructure. The latter is with the view to offer an alternative to the
traditional grant funding and plug financing gaps for strategic investments. The
Commission is pursuing consultations with several partners, including financial
institutions, and will present when appropriate, a policy document explaining
the framework, the objectives and the conditions for the use of financial
instruments in the field of transport, in line with the CEF Regulation.

The roll-out of financial instruments under
the CEF will be progressive. Until 2015, the available budget for all financial
instruments is set at 10% of the total CEF envelope and the resources available
for the Project Bond instrument under the CEF are limited at EUR 230 million
for the three sectors of the CEF. After 2015, if the final evaluation of the
pilot phase of the Project Bond Initiative is positive and if the market
take-up reaches 8%, the available budget for all financial instruments can be
increased up to 20%.

[1]               Regulation (EU) No 1315/2013
of the European Parliament and of the Council of 11 December 2013 on Union
guidelines for the development of the trans-European transport network and
repealing Decision No 661/2010/EU, OJ L 348, 20.12.2013.

[2]               The attached Staff Working Document sets out the
methodology for identification of the core and the comprehensive network used
by the European Commission in its proposal, as amended by the European
Parliament and Council during the legislative procedure.

[3]               Regulation (EU) No 1316/2013 of the European
Parliament and of the Council of 11 December 2013 establishing the Connecting
Europe Facility,  amending Regulation (EU) No 913/2010 and repealing
Regulations (EC) No 680/2007 and (EC) No 67/2010, OJ L
348, 20.12.2013.

[4]               It is to be spent in Cohesion Member States for
projects of high EU added value aiming at reinforcing the connections between
the Eastern and Western parts of the Union.

[5]               C(2013)9690

[6]               http://ec.europa.eu/transport/themes/infrastructure/ten-t-implementation/priority-projects/index_en.htm

[7]               Article 45

[8]               Article 21 of TEN-T Regulation

[9]               Included in 2012/88/EU: Commission Decision of 25
January 2012 on the technical specification for interoperability relating to
the control-command and signalling subsystems of the trans-European rail
system, OJ L 51, 23.2.2012, p. 1–65

[10]             Regulation (EU) No 913/2010 of the European Parliament
and of the Council of 22 September 2010 concerning a European rail network for
competitive freight, OJ L 276, 20.10.2010, p. 22–32.

[11]             See for instance: http://www.supergreenproject.eu/

[12]             See COM (2013)295 "Ports: an engine for
growth" and COM(2013)296 "Proposal for a Regulation of the European
Parliament and of the Council establishing a framework on market access to port
services and financial transparency of ports

[13]             See COM (2013)623 "Towards quality inland waterway
transport NAIADES II"

[14]             Part IV: indicative percentages for specific transport
objectives

[15]             The Rail Baltic project will be able to benefit from
the higher co-funding rates of the cohesion envelope.

[16]             AECOM Study, May 2011, funded by the TEN-T programme

[17]             According to Article 2 of the CEF Regulation
"works" means the purchase, supply and deployment of components,
systems and services including software, the carrying out of development and
construction and installation activities relating to a project, the acceptance
of installations and the launching of a project

[18]             http://ec.europa.eu/regional_policy/sources/docgener/guides/cost/guide2008_en.pdf
. A new guide will be prepared for the period 2014 -2020 and will be made
available in the first quarter of 2014.